Lawmakers, Industry Officials Praise WTO Win Against Chinese Auto AD/CVD
The World Trade Organization (WTO) ruled on May 23 the Chinese Ministry of Commerce erred in its assessment of antidumping and countervailing duty rates for U.S. car and sport-utility vehicle imports. The rates violate multiple international agreements, the WTO Dispute Settlement Body decided. According to the Office of the U.S. Trade Representative, the rates reached 21.5 percent in 2013 and impacted roughly $5.1 billion worth of U.S. auto exports. “This is the third time that the United States has prevailed in a WTO dispute challenging China’s unjustified use of trade remedies. Each time, a WTO panel of experts has made clear that China had no basis whatsoever for imposing duties on American goods,” said U.S. Trade Representative Michael Froman in a May 23 press release. “USTR will keep pressing for China to change its trade remedies practices that unfairly restrict U.S. exports.”
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The duties affected auto models such as Jeep Grand Cherokee, Buick Enclave, Cadillac Escalade and others, said USTR. Industry officials lauded the WTO decision. "China's protectionist practices have robbed America of export opportunities and jobs. China expects America to keep its market open even though it has consistently flaunted the rules for more than 12 years,” said United Steelworkers International President Leo Gerard in a press release. "When America seeks to level the playing field against China by having them live up to the rules it agreed to when joining the WTO, China too often retaliates. Today, China was found to have broken the rules again."
Lawmakers also touted the decision as important victory in a broader struggle with Chinese competitors. “Whether we are dealing with foreign companies illegally dumping goods into the United States or Chinese military officers engaged in criminal hacking, the United States must uphold the law when it comes to enforcement,” said Senate Finance Committee Chairman Ron Wyden, D-Ore., in a press release (here). “And if China retaliates, as it threatened to do in response to the criminal proceedings against state-sponsored economic espionage launched by the Department of Justice, the United States should exercise all available options to enforce U.S. rights.” A U.S. grand jury this week indicted five Chinese military officials accused of economic espionage on U.S. interests, including spying on attorney-client communications in trade litigation (see 14052008).